20 July 2011capital raising announcement● Neutral
Offer document for the entitlement offer: 1 new share for every 6 held at $0.15, opening 2 August and closing 16 August 2011. Follows the 13 July raising; it adds terms but no new development.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
20 July 2011admin correction● Neutral
Corrects typos in the entitlement offer document: issue price is $0.15, not $0.12 in one section, and options on issue are 13,435,000, not 14,835,000. A corrected document is attached.
13 July 2011capital raising announcement● NeutralMajor
Strike is raising $16.8m: a $7.39m placement (about half taken by M H Carnegie) plus a fully underwritten entitlement offer, for US Eagle Ford and Wilcox Slope work and working capital. MD Simon Ashton intends to step down; director David Wrench is in talks to become CEO.
11 July 2011admin correction● Neutral
Clarifying statement on the Kingston lignite resource in the 4 July presentation: 578.3 Mt under JORC 2004 (523.5 Mt measured, 54.8 Mt indicated), reported as of June 2007. No change to the estimate; open-cut potential is undetermined.
4 July 2011asset acquisition disposition▲ GoodMajor
Strike paid US$2.3m for 10% of the 37,000-acre St Landry Canyon project in Louisiana. First well, targeting 360-680 Bcfe (dry hole cost about US$14m gross), spuds in August. Eagle Ford leasing expanded to 18,000 acres; Sadie 1 pipeline now delayed to late July/August.
4 July 2011investor presentation● Neutral
Company presentation promoting new US initiatives in the Eagle Ford and Louisiana Wilcox Slope, alongside Louise, Sadie 1, Cooper and Kingston. It mostly repeats the 4 July announcement, adding a claim of potential 're-rating'. No new results.
16 June 2011farm in farm out agreement▲ GoodMajor
Strike signed the Eagle Landing JV agreement, confirming its 27.5% Eagle Ford interest. JV leases total 12,400 acres (3,410 net), mostly in Fayette County. Net target potential is 10-21 million barrels of oil equivalent; leasing continues. Finalises the position announced 28 April.
15 June 2011director officer appointment● Neutral
Company Secretary Tony Brazier resigned effective 15 June 2011, and Andrew Dimsey has been appointed in his place. Administrative change.
31 May 2011regulatory community update● Neutral
Strike says its Southern Cooper permits PEL 94 (35%), 95 (50%) and 96 (66.67%), covering 8,400 sq km, have unconventional gas and liquids potential. Drilling is planned later in 2011 or early 2012, after Senex spudded a nearby well. No new results.
24 May 2011joint venture update● Neutral
Eagle Ford acreage has grown to 10,000 gross (2,750 net). Sadie 1 pipeline tie-in needs 6-8 more weeks before testing, and Louise output rose 15% to 5.2 MMcfe/day. The 2011 drilling program is being restructured to 3-5 wells, with Wilcox drilling slipping to Q4.
28 Apr 2011farm in farm out agreement▲ GoodMajor
Strike is taking a 27.5% interest in an Eagle Ford shale joint venture in Texas, with about 8,500 gross acres (2,300 net) in the oil window. Target potential is 7-14 million barrels net. New oil-focused strategy; documentation still being finalised and no price stated.
19 Apr 2011quarterly activities report● Neutral
Appendix 5B for March quarter: cash A$11.04m (from A$5.0m), helped by A$21.4m sale proceeds, net of A$5.9m debt repayment and A$4.7m operating outflow. Next-quarter outflow estimated at A$2.4m. Shares on issue 328.6m.
19 Apr 2011quarterly activities report● Neutral
March quarter: cash A$11.04m, debt retired. Louise stake rose to 40%; production fell to 215 MMcfe after the Rayburn/Mesquite sale. Sadie 1 awaits pipeline tie-in for testing; Steindorf 1 was non-commercial. New US acreage and Australian oil-focused applications are being pursued.
31 Mar 2011drilling progress report● Neutral
Production casing is set at Sadie 1, with plan to test direct to sales via a nearby pipeline. Pipeline and fraccing scheduling mean testing is expected in two to three months, later than earlier drilling timing implied. No flow results yet.
24 Mar 2011drilling result▲ GoodMajor
Sadie 1 reached total depth of 12,400 feet. Gas shows and logs indicate potential gas pay in the main Wilcox target; the well is being prepared for completion and testing. Prospective resource 15-20 Bcf (40% Strike). Commerciality is not yet shown.
23 Mar 2011director officer appointment● NeutralMajor
Executive Director and COO Derrick O'Keeffe resigned from the board, effective immediately, after an internal reorganisation to cut operating management and focus on high-impact exploration. This follows the January sale of two producing fields.
18 Mar 2011asset acquisition disposition▲ GoodMajor
Strike bought a further 10% of the Louise gas-condensate field and Eaglewood JV for US$3.75m, lifting its stake from 30% to 40%. Louise has produced a steady 5 MMcfe/day since May 2010 with no decline; Strike's share rises to about 2 MMcfe/day.
17 Mar 2011drilling progress report● Neutral
Sadie 1 has set a 7 5/8-inch liner at 10,992 feet and is being prepared to drill ahead. The 12,500-foot target is expected within 1-2 weeks. Strike holds 40%. No new result.
14 Mar 2011half year report▲ Good
Half year to 31 Dec 2010: net profit A$2.64m on revenue A$6m, EBITDAX A$2.78m, cash A$5m. January's US$21.7m Rayburn/Mesquite sale left A$20.4m cash and no debt. Steindorf 1 flows remain below commercial, with plug-and-abandon decision still pending.
10 Mar 2011drilling progress report● Neutral
Sadie 1 is drilling ahead at 10,341 feet, with the 12,500-foot target expected in 2-3 weeks. On schedule. No new result.
3 Mar 2011drilling progress report● Neutral
Sadie 1 is setting a 9 5/8-inch liner at 7,690 feet, with the 12,500-foot target expected in 3-4 weeks. No new result.
2 Mar 2011investor presentation● Neutral
Conference presentation repeating known facts: 2011 exploration push, US$21.7m sale, Louise, Cooper CSG and Kingston. Shows 328.6m shares at 20.5c, market cap A$67.4m, nil debt as of 23 February. No new results.
1 Mar 2011investor presentation● Neutral
Conference presentation on Kingston lignite (578 Mt resource): University of Adelaide tests confirmed it can be combusted and gasified into syngas. Strike is now seeking a partner to advance the project. No new resource figure or funding.
24 Feb 2011well test result▼ BadMajor
Steindorf 1 flowed gas from four zones, but on current indications below commercial rates, which the company calls disappointing. One horizon is still being evaluated before a decision to extend testing or abandon. Sadie 1 is drilling ahead at 2,370 feet.
21 Feb 2011drilling spud● Neutral
Sadie 1 spudded over the weekend at Homeplace, Texas, and is at 2,285 feet. Target is 15-20 Bcf at 12,000 feet, about 40 days to drill. Strike holds 40% and will give weekly updates. Opens the six-well 2011 program.
15 Feb 2011drilling scheduled▲ Good
Strike expects to spud Sadie 1 within a fortnight, the first of six 2011 US wells, targeting 15-20 Bcf at Homeplace to 12,000 feet. Strike's interest rose from 30% to 40%.
10 Feb 2011flow test result● Neutral
Four zones of Steindorf 1 were fracced and the well is cleaning up, flaring gas as planned. No flow rates are given yet; measurements will follow once the well stabilises. Commerciality remains unproven.
31 Jan 2011quarterly activities report● Neutral
December quarter: revenue A$2.8m, EBITDAX A$1.3m, production 488 boe/d at quarter end. Post-sale cash is A$20.4m after the Rayburn/Mesquite sale. Forge 1 evaluation is complete, further Cooper drilling is late in 1H 2011, and a six-well US program starts in March.
31 Jan 2011quarterly activities report● Neutral
Appendix 5B for December quarter: cash was A$4.997m (from A$5.836m), with net operating and investing outflow of A$0.67m. Loan facility A$5.9m available, A$5.7m used. Next-quarter outflow estimated at A$5.0m. Sale proceeds arrived after quarter end.
28 Jan 2011drilling progress report● Neutral
Steindorf 1 was perforated and fraccing could start as soon as 1 February, with production testing to follow over several weeks across multiple zones. This put testing slightly behind the late January start earlier flagged, and commerciality remained to be shown.